As of March 20th, data from Coinglass highlights pivotal levels for Bitcoin, particularly significant at $88,000 and $84,000. Should Bitcoin surpass the threshold of $88,000, the total short liquidation on major centralized exchanges (CEXs) could reach an alarming $371 million. This figure underscores the potential for a substantial market impact, which traders should closely monitor.
Conversely, if Bitcoin dips below $84,000, the cumulative value of long liquidations could escalate to $422 million. Notably, while the liquidation chart offers valuable insights, it does not detail the specific number of contracts awaiting action or their exact liquidation values. Instead, the chart illustrates the relative significance of each liquidation window, revealing how price movements at these levels may trigger amplified market responses.
Traders should be mindful that a pronounced liquidation bar signifies heightened volatility, hinting at a potential liquidity cascade that could sway price directions dramatically once these critical levels are breached.